15th Oct 2026 08:53
(Alliance News) - Shares in Antofagasta PLC fell on Thursday after it reported lower than expected third quarter production numbers, a worse than expected outlook for 2027, and raised its cost guidance for 2026.
The London-based miner focused on Chile traded 6.5% lower at 3,339.00 pence each in London on Thursday morning, the worst performing stock on the FTSE 100, which was up 0.4%.
Antofagasta said copper production in the third quarter of 2026 rose 7.0% to 151,900 tonnes, from 142,000 in the second quarter, 2.0% light of company compiled consensus of 155,000.
Sales volumes increased 31% on-quarter to 170,700 tonnes.
Gold production edged down 4.3% to 44,300 ounces from 46,300 in the second quarter, missing company compiled consensus of 53,000 ounces. Output of molybdenum, a common by-product of copper mining, decreased 6.5% to 2,900 tonnes.
At Los Pelambres alone, third quarter copper output rose 17% on-quarter to 79,300 tonnes. This reflected "higher recoveries and the drawdown of approximately 7,000 tonnes of inventories accumulated during the prior period".
"These factors were offset in part by lower throughput, which related to the July 2026 weather event and the related temporary pause in operations. Copper grades and throughput at Los Pelambres are both expected to increase in the fourth quarter," the company added.
Chief Executive Officer Ivan Arriagada says: "The copper market continues to demonstrate strong fundamentals. Looking ahead, the combination of continued investment in energy infrastructure and digitalisation, together with supply constraints, provides a supportive backdrop, helping to reinforce the long-term outlook."
For 2026, Antofagasta still expects annual copper output between 625,000 and 655,000 tonnes. It had cut its outlook in August from 650,000 to 700,000 tonnes in the wake of poor weather.
For 2027, it sees copper production between 630,000 and 690,000 tonnes compared to company compiled consensus of 692,000 tonnes.
In addition, the firm raised its guidance for cash costs before by-product credits for 2026 to USD2.60 to USD2.70 per pound, "reflecting global diesel prices remaining at elevated levels". The prior range was USD2.40 to USD2.60 a pound. But net cash cost guidance remains at USD1.15 to USD1.35 a pound. Capital expenditure guidance is unchanged at USD3.4 billion.
CEO Arriagada said construction activities at Centinela and Los Pelambres are progressing well, and "we have entered the final phases of each schedule, ahead of construction and commissioning activities completing in 2027."
The CEO said the projects will "deliver significant growth and strengthen the resilience of our portfolio, and we remain focused on completing each project in line with expectations."
The firm said talks to resolve strike action at Centinela are continuing.
By Jeremy Cutler, Alliance News reporter
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